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Deming Chain Reaction

• Improve Quality --->
• Costs decrease because of less rework, fewer mistakes, fewer delays, snags, better use of machine-time and materials --->
• Productivity Improves --->
• Capture the market with better quality and lower price --->
• Stay in Business --->
• Provide jobs and more jobs

And in fact two factors lead to creating more jobs. First the lower costs gained by eliminating waste and errors allows prices to be lowered which will increase sales. Second by improving the product or service (by improving the processes inside the company) at the very least defects decline and reliability goes up.

Tip by W. Edwards Deming excerpted from Out of the Crisis

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